Moscow, August 22, 2013 – Pharmstandard OJSC (LSE: PHST IL, RTS: PHST RU) (further “Pharmstandard” or the “Company” announces the completion of the transaction to acquire a 100% share capital in Bever Pharmaceutical Pte Ltd (Singapore) (“Bever”) (the “Transaction”).
The amount of the transaction is US$590million. The Transaction will be funded by the combination of Pharmstandard’s shares and GDRs owned by Pharmstandard-Leksredstva OJSC in the amount of US$542 million (price per share of RUB 2,235.4 and price per GDR of US$20.76) and cash of US$48 million, which may be financed from external sources. Pharmstandard-Leksredstva OJSC currently holds Pharmstand-ard's shares and GDRs on its balance sheet at approximately US$475 million.
All settlements will be finalized by the end of December 2013.
The Company's strategic rationale for the Transaction includes securing a long-term fixed-cost supply of critical active pharmaceutical ingredients for two flagship OTC brands Arbidol® and Aphobazolum® as well as significantly increasing the Company's profitability.
It is expected that Bever will be included in a proposed spin-off of the Company's branded over-the-counter business.
Bever is now a part of Pharmstandard Group and will be included into Company’s perimeter of operations in the near term.